Tag: MMA

Government seeking US$200 million credit line from Sri Lanka

The Maldivian government hopes to finalise an agreement with Sri Lanka to establish a credit line worth US$200 million, President Mohamed Nasheed told press today prior to departing for Sri Lanka to attend the swearing-in ceremony of President Mahinda Rajapaksa.

As preliminary discussions for the credit line has been ongoing for some time, the President said that he hoped an agreement would be signed in the near future between the Maldives Monetary Authority (MMA) and the Sri Lankan Central Bank.

“Our aim is not really to use that money for anything,” he explained. “Our aim is to set up a mechanism for Sri Lankan currency to be available for purchase in the Maldives and for Maldivian currency to be available for purchase in Sri Lanka. To set up that mechanism, first of all a framework agreement has to be established. God willing, these discussions will reach a conclusion during this trip.”

He added that the government’s objective was to enable Maldivians to purchase Sri Lankan rupees with Maldivian rufiyaa for imports as well as making Maldivian rufiyaa available to Sri Lankans who wish to buy Maldivian goods.

The mechanism would improve the country’s balance of payments, broaden business opportunities and alleviate the high demand for US dollars in the country, he said.

While Sri Lankans would spend more on Maldivian products as a result of the agreement, local demand for US dollars would “decline significantly” when Maldivians are able to spend “their own currency in Sri Lanka”.

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Counterfeit dollars circulating in the country: MMA

The Maldives Monetary Authority (MMA) has warned there are counterfeit US dollars circulating in the country, reports Miadhu.

The MMA said Police had recently discovered counterfeit 100 dollar notes printed on good quality paper. There are also lower quality fake prints of 20 and 50 dollar notes, according to MMA.

Police said the counterfeit notes are worth around US$400,000 and are printed under eleven serial numbers, making it difficult to determine their authenticity.

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Civil Servants Association threatens to sue finance ministry if salaries lowered

The Maldivian Civil Servant Association (MCSA) said at a rally yesterday that it will file a lawsuit against the finance ministry if civil servants are given the lowered salary this month.

MSCA spokesman Abdulla Mohamed said the organisation was placing five lawyers on standby.

”The finance minister [Ali Hashim] has personal issues against the civil servants, he’s being stubborn,” Abdulla said, adding that the problems were getting worse “because [Hashim] does not have much knowledge on how to handle a government’s finance ministry.”

”Whatever he thinks is right at the moment, he does. He does not plan things well,” Abdulla claimed.

The ministry’s request that the Maldives Monetary Authority (MMA) and parliament mediate its dispute between the CSC “is not a solution”, he said, insisting that the ministry needed to “follow the law” and pay the full salaries for this month.

Otherwise, he said, the government would be in debt and owe civil servants the rest of the money.

Abdulla further added that the CSC had been careless, and failed to fulfill its responsibility to ensure the deductions applied the independent commissions, judiciary and police as well as other civil servants.

State Finance Minister Ahmed Assad said holding discussions with just the CSC would not lead to a solution, and that the involvement of a third party was needed.

The civil servants would be receiving the lowered salaries this month, he said. “The MCSA has a right to go to court and file a lawsuit if they have problems with the finance ministry.”

In addition, Assad claimed the CSC did not discuss the restoration of civil servants salary with the finance ministry.

”But they did asked us once: ‘is the country still in the state of a economic crisis?’, and we said ‘yes’,” Assad explained.

Governor of the MMA Fazeel Najeeb said the organisation would not outline its involvement in the arbitration process yet, but would speak to the press in several weeks.

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